Kuehne + Nagel’s 1st quarter profit up 18.5%

Kuehne + Nagel’s 1st quarter profit up 18.5% Swiss forwarding and logistics group Kuehne + Nagel International AG today reported first quarter 2008 net earnings of 154 million Swiss francs ($156 million), up 18.5 percent from SFr 130 million in the same quarter last year.
   The Schindellegi-based company’s quarterly earnings before interest and tax (EBIT) increased 14.5 percent to SFr 197 million ($199 million) from Sfr 172 million. Turnover rose 9 percent to SFr 5.31 billion ($5.36 billion).
   In Kuehne + Nagel’s main division, sea freight, EBIT increased 11.9 percent to Sfr 99 million ($100 million) on a revenue gain of 9.5 percent to SFr 2.44 billion ($2.46 billion). The company said its sea freight volume grew 10 percent in the quarter. “The economic slowdown in the United States led to a decline in imports from Europe and Asia which was more than compensated by the considerable rise in export volume.”
   Kuehne + Nagel’s first quarter air freight EBIT rose 20.9 percent to SFr 52 million ($53 million). Turnover in the division went up 13.5 percent to SFr 951 million ($961 million). “Despite a volatile market, the company increased demand for its time-defined air freight products, raising volumes by 17 percent. In Europe, business performed particularly well, but the successful expansion of niche products, such as hotel logistics, also contributed to the remarkable result.”
   For contract logistics, the company posted flat EBIT of Sfr 27 million ($28 million), while revenue gained 6.6 percent to SFr 1.16 billion ($1.17 billion). “In contract logistics, the focus was on the efficient implementation of new business won in 2007 and on expanding Eastern European operations.”
   The company posted EBIT of SFr 3 million ($4 million) for its rail and road logistics division, down 25 percent, although revenue increased 7.1 percent to Sfr 727 million ($735 million).

Herms

   Kuehne + Nagel’s quarterly revenue broken down on a regional basis was:
   ' Europe, SFr 3.62 billion ($3.65 billion), up 8.9 percent year on year.
   ' Americas, SFr 965 million ($975 million), up 7.6 percent.
   ' Asia Pacific, SFr 433 million ($438 billion), up 7.4 percent.
   ' Middle East, Central Asia and Africa, SFr 296 million ($299 million), up 17.9 percent.
   'Our strong market position, global reach and high value logistics offerings enabled us to generate additional growth and achieve a very good result in the first quarter,' said Klaus Herms, chief executive officer. 'The impact of the economic slowdown is difficult to quantify. We are convinced of the resilience and stability of our business model.'